At this time I've made them in the other way. Maybe in a nearest future I'll make a video on how to make such a cloth. To speak in a nutshell - a blanket and a wrap was made using multiple cloth sim with pinning. Pillows was made in two steps. Step one: make a lowpoly pillow with subsurf and assign a Collision to it. Step two: duplicate that pillow, scale down the source a little and then subdivide the copy with 5-10 iterations and assign a Cloth to it. So we got a solid core and a soft cloth cover for it, which remains the pillow's shape but adds some nice stretches.

I still wonder about the light distribution. Are you using another Yafaray-version than 0.1.1 or 0.1.2?I don't get the falloff of the arealight like in your image here.

I'm using Blender 2.49b and Yafaray 0.1.1 for rendering. Here's the stripped scene. I removed all furniture, etc, but left the room geometry and a light untouched.